Tuesday, September 26, 2017

Tapping The Philanthropic WellTony Poderis

Principal Fund-Raising Myth:It's common knowledge that
corporations and foundations give most of the money to non-profit organizations

Principal Fund-Raising Truth:You go where money you think
you can get is to be found in the greatest quantities and most of the time that
means you look to the individual donor

No fund-raising campaign should ever be started until you have identified the
sources from which you will draw contributions. Sources here does not refer
to specific potential donors, but to the six categories of donors who contribute
money to non-profit organizations. They are:

Your plan for a fund-raising campaign should target each source appropriate
for that campaign and set a goal for contributions to be achieved from that
source. Those goals are determined by rating and evaluating the potential donors
that comprise each source.
Trustees

All fund-raising campaigns begin with the trustees of an organization. In general,
if you are planning a fund-raising campaign and are not expecting important
contributions from your trustees, there is something drastically wrong with
either your campaign plan or the composition of your board. Trustee giving sets
the pace for any fund-raising campaign, and your board should have on it persons
ready, willing, and able to make their best possible gifts to the organization.

A board of trustees is a resource for an organization to draw upon in carrying
out its mission, and part of the mission of any successful non-profit organization
is to raise money. Therefore, there must be people on an organization's board
who can be counted on to give money. If your organization does not have trustees
who can give, add them, even if it means enlarging the board.

Individuals

Individuals are the main source of philanthropic contributions in America.
Most successful fund-raising campaigns receive from 70 to 80 percent of their
money from individuals. They are the most flexible and spontaneous givers. Unlike
corporations, foundations, and governmental entities, individuals are able to
make a decision on the spot, and if they want, they can choose to put all their
eggs in one basket. Joe Smith can reach for his checkbook a lot faster than
the Metropolis Community Foundation with its rigid timetables and layers of
committee meetings, and Mr. Smith has no requirement to spread his charitable
contributions among a variety of worthwhile causes.

Corporations

Corporations look at requests for support from three points of view:
1. Is it good philanthropy? A contribution made for straight philanthropic reasons
is a gift of good citizenship from which a corporation expects little or no
direct benefit.

Straight philanthropic giving is the kind non-profits usually receive from
corporations for annual fund campaigns and operational support. It is the main
type of giving, which corporations use to satisfy their commitments and responsibilities
to support community initiatives that enhance the well-being of constituencies
important to them---employees, shareholders, and customers. Usually, an organization
will receive many contributions made for this purpose, and no single corporation
expects greater publicity and recognition than that directly attributable to
the value of its gift. Corporations rarely ever make this kind of donation in
communities where they have little or no presence.

2. Does it enhance the corporate image? A contribution made with image as
a major consideration is made with the expectation that it will engender positive
feelings on the part of the public toward the corporation.

Giving to build image is high-visibility giving, and a corporation expects
to receive wide public recognition for such a gift. Often the contribution will
take the form of sponsoring an event or program in expectation that the corporation
will have its name attached to it. Corporations that have a relationship with
a large segment of the public as a result of the products or services they offer
are particularly responsive to image-related contribution requests. The greater
the visibility a non-profit can promise for an image-related contribution, the
greater the likelihood of a positive and substantial response to solicitation.
Great care should be taken by the non-profit organization not to promise too
much. Out-of-pocket expenses brought on by promoting the sponsored event or
program---everything from billboards to tote bags---can severely diminish the
proceeds from the sponsorship.

3. Will it generate revenue for the corporation?A contribution made based
upon its potential to generate revenue is as much business deal as charitable
gift.

Giving which produces revenue is bottom-line giving for corporations. For
most non-profit organizations, this kind of support should rank a distant third.
Essentially, the non-profit organization sells, advertises, or endorses a company's
products or services and receives contributions out of business revenues thereby
generated. Unfortunately, the proceeds are seldom in line with the effort expended,
and you run the risk of alienating similar companies to the point where you
cannot go to them for contributions of any kind. In addition, contracts for
this type of program are usually written by the corporation so that it can withdraw
its participation on short notice, leaving the non-profit organization high
and dry.

Private Foundations

Private foundations are for the most part repositories of funds from a single
source or at most a very few---for example, an individual or family. They often
operate with greater freedom than community foundations and act quite quickly.
While many have formal guidelines, some will make grants on the strength of
a relatively informal request. Private foundations give to all types of organizations,
programs, and fund-raising campaigns. Often they are good sources of start-up
funds and seed money. Some give to specific subjects and causes, while others
limit their grant-making geographically.

Community Foundations

Community foundations are repositories of funds contributed by individuals
and corporations for use primarily to improve the quality of life within their
community. They can cover a single city, a region, a state, or even an entire
country. Most commonly, they make grants to non-profit organizations from the
income earned on endowment. Sometimes they make a distribution of principal
from endowment or invest endowment funds in a community initiative.

The funds at a community foundations disposal can often be restricted, meaning
that grants have to be made within an interest area, such as arts, or to a specific
organization, such as a community's art museum. Unrestricted funds are distributed
according to the foundations best determination of need.

It takes time for a community foundation to analyze a grant application. A
number of individuals and committees usually review a proposal---which must
be submitted following specific guidelines---before it is accepted or rejected.
Grants are made on a regular schedule, usually quarterly, and you can expect
months to pass between first contact and grant approval.

Government

Government at the local, state, and federal level contribute funds to non-profits.
Federal agencies such as the National Endowment for the Humanities and the National
Institutes of Health make grants in their particular areas of interest. The
states have similar area-of-interest grant-making agencies. Sometimes an organization,
such as a state arts council, isn't actually part of state government, but exists
as a semi-independent authority to administer the distribution of state and
federal funds. On the local level, agencies ranging from park boards to the
mayors office may have a process for making contributions to non-profits. In
general, the lower the level of government, the faster the turnaround time for
a grant proposal. As is the case with foundations, governmental grant-making
agencies usually require that an organization follow a set of predetermined
guidelines when requesting funds.

Elected officials are the ultimate controllers of the funds governments make
available for grant-making, so lobbying legislators, as well as informing and
involving other key government officials, is an important tactic for any organization
that sees government as a funding source. Trustees who have clout with elected
or appointed officials can be invaluable in presenting an organizations need
for funding.

Where Will You Find Most Of Your Money?

Your analysis of the best possible fund-raising sources is dependent on the
cause for which you are seeking money, and the ways in which you are going after
it. In some campaigns, all six source groups may be fair game. In others, it
is conceivable that only one or two will be targeted. A long, hard look at your
organization and its mission, your community and its philanthropic traditions,
and the number of foundations, corporations, and governmental entities with
a history of supporting your organization or the type of programs it offers
will help you assess your chances with each category of funding source.

Every fund-raising campaign requires you to examine the cause you are touting,
the arguments you have marshaled in support of it, and the people and means
available to present those arguments. You then determine which sources are likely
to have the most money you can access.

I remember when the American Symphony Orchestra League (ASOL) asked its then
more than 1,500 members what topics they wanted to see addressed at the League's
annual regional workshops. More than 80 percent listed fund-raising. When asked
what specific fund-raising topic they wanted to focus on, over 80 percent said
corporate giving. Yet many of ASOL's orchestras, ensembles, and bands are in
small communities where there is little or no corporate presence.

Why did they choose corporate fund-raising? Because most of us find it easier
to ask a corporation for money than a private individual, and because as a society
we have come to view corporations as the holders of vast wealth. When a corporate
contributions officer says no, it seems less personal. However, a fund-raising
campaign strategy should not be based on anticipating the least painful turndown.
Nor should fund-raising strategy be based on an erroneous understanding of wealth.
It is the owners of a corporation, individuals who hold a corporation's stock,
who have the money to give to worthy causes. You go where money you think you
can get is to be found in the greatest quantities, and most of the time that
means you look to the individual donor.

Tony Poderis was for 20 years to 1993 Director of Development for The Cleveland
Orchestra and its Summer Home, Blossom Music Center. He was responsible for
Cleveland's largest annual institutional fund-raising campaign. Since 1993,
Tony has been a fund-raising consultant serving all non-profit institutions'
needs to develop and to maximize their potential to raise Annual, Endowment,
Capital, and Sponsorship & Underwriting funds.